BANFF, Alta. – Trade and agriculture ministers from 18 medium-sized food exporting countries last week bemoaned the “genuine hardship” being faced by their farmers and food processors.
After two days of meetings in Banff, the Cairns Group of countries blamed a familiar villain.
Trade and production-distorting subsidies and policies have been the group’s target since it was formed in 1986 to try to end the export subsidy war between the European Union and the United States.
On Oct. 12, it issued a proclamation vowing to continue the fight, with a clear emphasis on continuing to pressure EU subsidies.
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“Those of our people whose livelihoods depend on rural industries are suffering genuine hardship,” said the final communiquŽ.
“World agricultural and agri-food markets remain highly distorted by export subsidies, huge levels of domestic support and severely restricted access to markets, including tariffs, sanitary and phyto-sanitary and other non-tariff measures.”
Led by founder Australia, the countries vowed to continue their battle at the World Trade Organization to eliminate export subsidies, reduce tariffs and cut domestic subsidies around the world.
The group met as the world spirals back into a subsidy frenzy similar to one that existed when Cairns was formed 14 years ago.
After a lull in the wake of the 1994 WTO deal, which led Canada to slash its subsidies by more than half and other countries to promise cuts, the subsidy war is back on, led by the U.S.
“Despite important Uruguay Round outcomes, total support and protection for farmers in developed countries now exceeds US $360 billion, a return to the damaging levels of the mid-1980s,” said the final Cairns statement.
Canadian agriculture minister Lyle Vanclief said it was important that the Cairns countries reaffirm their determination to push for more trade liberalization and subsidy reduction.
“I do think this moves the process forward,” he said. “I think it was important to reaffirm our focus.”
Bob Friesen, Manitoba farmer and president of the Canadian Federation of Agriculture, led a group of Cairns farm leaders who urged the ministers to continue to fight for the end of trade distortions.
But in an interview, he said he was not sure all the pro-free trade rhetoric uttered last week in Banff really would matter.
“I’m not sure this really moved things along,” he said. “It may well be one of those cases where when all is said and done, more is said than done.”
Benefit the poorest
One of the emerging themes of the Cairns talks was that trade liberalization is good for developing countries, which make up the bulk of WTO members.
Cairns chair Mark Vaile, Australian trade minister, said trade liberalization is the most logical way to help developing countries increase their wealth.
And Cairns will court developing countries to support its goals at the WTO.
“We are looking to build a coalition of support outside Cairns,” he told the closing news conference. “At the end of the day, we have to be brutally frank. The WTO is a political process. Politics looks at numbers.”
An unusual part of last week’s meeting of Cairns ministers was the appearance of EU agriculture commissioner Franz Fischler.
He began his address by wondering if he was a “Daniel in the lions’ den or a lion in a den of Daniels.”
He criticized increased American subsidies and told Cairns members that while the EU is willing to discuss lower subsidies and border supports in the next trade talks, it wants concessions from other countries on state trading enterprises, use of food aid as an export subsidy, and domestic supports.
Vaile, speaking for Cairns, said the Europeans should not try to add non-trade issues to the next talks. They would be seen as new ways to protect European farmers.
“Introducing these issues is likely only to divert and delay WTO negotiations,” he said.
Heading into the next negotiating round, the EU and Cairns remain far apart on what should be negotiated and what should be the goal.
